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DECISION No. 46/2004/QD-TTg OF MARCH 26, 2004 PROMULGATING THE REGULATION ON ASSURANCE OF SAFETY FOR THE SYSTEM OF ONSHORE GAS PIPELINES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to Decree No. 03/2002/ND-CP of January 7, 2002 on protection of oil and gas security and safety;

At the proposal of the general director of Vietnam Oil and Gas Corporation;

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on ensuring safety for the system of onshore gas pipelines.

Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette.

Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, the presidents of the People's Committees of the provinces and centrally-run cities, the chairman of the Managing Board and the general director of Vietnam Oil and Gas Corporation, and concerned organizations shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

REGULATION ON ENSURING SAFETY FOR THE SYSTEM OF ONSHORE GAS PIPELINES

(Promulgated together with the Prime Minister's Decision No. 46/2004/QD-TTg of March 26, 2004)

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Regulation provides for the assurance of safety for people, properties and environment along the pipelines of gaseous hydrocarbon and gas products; ensuring the safe and efficient operation and exploitation of the system of such pipelines.

Article 2.- Subjects of application

1. This Regulation applies to the system of onshore pipelines of gaseous hydrocarbon and gas products as defined in Clause 1, Article 3 of this Regulation.

2. This Regulation does not apply to the system of pipelines of gaseous hydrocarbon and gas products, which are offshore, within factories, gas-processing and -treating stations, gas-compressing and gas-distributing stations, and gas-consuming households.

3. For pipelines of gaseous hydrocarbon and gas products, which are made of non-steel materials, the investors shall have to submit to competent State bodies the list of design criteria and pipeline safety assurance requirements exclusively applied to their projects, on the basis of reference to the provisions of this Regulation.

Article 3.- Interpretation of terms

In this Regulation, the following terms are construed as follows:

1. "System of pipelines of gaseous hydrocarbon and gas products," hereinafter called gas pipelines for short, means a system consisting of steel pipelines and accompanying equipment used to carry gaseous hydrocarbon and gas products, having the maximum operating pressure of not lower than 7 bar, possibly laid on or under the ground, running from the shore-reaching point (for offshore gas exploitation projects) or from the gathering point (for onshore gas exploitation projects) to the gas-treating or consuming places.

For the purpose of determining a safe distance, gas pipelines are classified into three grades with their corresponding maximum operating pressures as follows:

Gas pipelines Maximum operating pressure

Grade 1

Between 7 bar and under 19 bar

Grade 2

Between 19 bar and under 60 bar

Grade 3

Of 60 bar or over

2. "Gas products" include commercial gas, liquefied petroleum gas (LPG), condensate gathered from the process of exploiting, treating and processing hydrocarbon gas.

3. "Boundaries of a pipeline land strip" mean two vertical and parallel planes running along the outer boundaries of a pipeline land strip.

4. "Minimum distance" means the permitted minimum distance on a plan elevation, measured from the edge of a pipeline to the nearest protruding part of dwelling houses; fences of plants, factories, schools or hospitals; or from the boundaries or other works to the boundaries of the safety corridor.

5. "Boundaries of a safety corridor" mean two vertical and parallel planes being distanced from the outer edge of each side of a pipeline by the minimum distance, and are used to determine the outer boundaries of the safety corridor.

6. "Boundaries of the affected area" mean two vertical and parallel planes which are equally distanced from the center of a pipeline to both of its sides, and are used to determine the outer boundaries of the affected area.

7. "Competent State bodies" mean ministries, ministerial-level agencies, People's Committees at all levels, and other State management bodies as prescribed by law.

8. "Investor" means an organization or individual that owns or is assigned by the State to manage a gas pipeline according to law provisions.

9. "Operator" means an organization or individual that is responsible for operating a gas pipeline, and is designated in writing by the investor.

10. "Maximum operating pressure" means the highest pressure under which a gas pipeline is operated under normal conditions.

11. "Risk assessment" means the assessment of potential risks on the basis of accepted criteria, which is conducted simultaneously with the determination of applicable measures to reduce such risks to a reasonable level.

12. "Naturally acceptable criterion of individual death risk" means the level of individual death risk which is naturally accepted under the provisions of Article 5 of this Regulation. When the level of risk caused by an operation or a work is lower than this risk level, such operation or work shall be naturally accepted.

13. "Unacceptable criterion of individual death risk" means the level of individual death risk which is not accepted under the provisions of Article 5 of this Regulation. When an operation or a work has a risk level higher than this risk level, such operation or work shall be banned from being deployed or discontinued.

Article 4.- Classification of residential areas

Requirements on the design, construction and operation of gas pipelines must be based on the classification of residential areas situated along the pipelines. The classification of residential areas shall be determined on the basis of the average density of dwelling houses as provided for in Appendix 2 to this Regulation (not printed herein).

Article 5.- Risk criterion

1. The naturally acceptable criterion of individual death risk for people present within the safety corridor running along a pipeline is 1 x 10-6; the unacceptable risk criterion is 1 x 10-4.

2. The naturally acceptable criterion of individual death risk for staff participating in operating a gas pipeline is 1 x 10-6; the unacceptable risk criterion is 1 x 10-3.

3. In the case where risk is assessed to be at a level higher than the naturally acceptable criterion of individual death risk, the investor or operator must apply measures to reduce such risk. The risk reduction measures shall be selected on the basis of benefit-cost analyses according to the norm that risk shall be reduced to a reasonable and attainable level. These measures include:

a/ Technical measures: Increasing the pipe wall thickness; increasing the depth of pipelines laid underground, reinforcing the covering layers on pipelines, casing pipelines with cement or other materials; increasing the corrosion resistance of pipelines; increasing the minimum distance; building separating fences or walls, raising the reliability of automatic systems or systems of control valves, etc.

b/ Managerial measures: Controlling the operation regime; intensifying examination, expertise and maintenance; drawing up plans on prevention and fight of incidents, fires and explosions, and organizing regular drills; placing more notice boards and signboards, etc.

Article 6.- Design requirements

1. Requirements on the pipe wall thickness: The pipe wall thickness must be determined according to the design standards approved by the Ministry of Construction. In all cases, the pipe wall thickness should not be smaller than the thickness prescribed in Appendix I to this Regulation (not printed herein).

2. The depth of underground pipelines: Underground pipelines must be laid at a depth of at least 1 meter, measured from the natural land surface to the top of the pipelines. For pipelines running across submerged areas (rivers, canals, ditches, lakes, ponds, marshes, etc.), this depth shall be measured from the bottom of such areas.

3. Designing and construction of new pipelines: The designing and construction of a pipeline running in parallel with or across a currently operating pipeline must ensure that the accepted risk level would not be increased and the consent of the investor or operator of such operating gas pipeline is obtained.

4. Change of design criteria: All changes in distance, design criteria, which do not conform to the provisions of this Regulation and the accepted criteria must be approved by competent State bodies.

Article 7.- Requirements on the construction and installation work

1. Investors shall be responsible for drawing up construction plans. A gas pipeline can be constructed only when the pipeline land strip has been established under the provisions of Article 10 of this Regulation.

2. Construction and installation contractors shall be responsible for strictly complying with law provisions and satisfying the investors' safety requirements; building up a safety management program for each stage of the process of construction, pre-acceptance test and test run of the project.

3. Investors shall be responsible for examining and approving the safety management programs of the construction and installation contractors, supervise and examine the safety work in the construction process, and bear responsibility to the State for safety, health and environment.

Article 8.- Requirements on the operation work

1. Investors shall be responsible for examining and approving the system of operating organizations; the safety management programs; and immediately notify the concerned agencies of the gas pipeline operators.

2. Operators must establish procedures and processes related to the operation and maintenance of their pipelines, such as:

a/ Operational processes under normal conditions, in maintenance, repair and in cases where incidents occur;

b/ Operation and maintenance processes exclusively required for high-risk equipment;

c/ Periodical supervision and expertise programs;

d/ Contingency plans, analysis of accidents and incidents;

e/ Fire and explosion prevention and fight and environmental pollution control plans.

3. Operators must periodically re-compute the maximum operating pressure, at least once every 5 years. The operating pressure of a gas pipeline must not exceed the maximum operating pressure.

4. When there appears a change in the environmental conditions or the use of land in the affected area, which may cause danger to people and gas pipelines, the operators should analyze risks and propose appropriate safety measures to minimize risks.

5. Operators shall have to report to the concerned agencies on all accidents and incidents according to law provisions and to overcome consequences and restore the operation of their projects.

Article 9.- Requirements on the maintenance and repair work

1. Operators must draw up maintenance plans, check and repair all breakdowns of their gas pipelines.

2. Operators must organize the archival of information and data on the operation, accidents, incidents, losses as well as information on surveys, repairs, patrols, technical expertise results, violation-handling documents, and remedial measures.

3. Investors shall have to examine and approve maintenance and repair plans and organize the examination of the implementations of these plans.

Chapter II

PROVISIONS ON THE PIPELINE LAND STRIP

Article 10.- Pipeline land strip

A pipeline land strip means the land area and the space within two boundaries of the pipeline land strip, which the State recovers and assigns to the investor. Operators shall have the full right to use such land strips in the process of constructing, installing, operating and maintaining the pipelines.

Article 11.- Boundaries of pipeline land strip

The boundaries of a pipeline land strip are determined on the basis of the distance, measured from the edge of the pipeline to both of its sides, of at least 2 meters, for grade-1 pipelines; or of at least 3 meters, for grade-2 or grade-3 pipelines.

Where many pipelines exist on the same land strip, the above-said distance is measured based on the plan elevation from the edges of the outmost pipelines.

Article 12.- Distance between pipelines

The distance between two pipelines, which is prescribed below, is the distance on the plan elevation between two closest edges of the pipelines.

1. When two pipelines are laid underground in parallel, the minimum distance between them is prescribed as follows:

Pipeline

Grade 1

Grade 2

Grade 3

Grade 1

0.5 m

1 m

2 m

Grade 2

1 m

2 m

3 m

Grade 3

2 m

3 m

3 m

2. Where two gas pipelines run in parallel, one underground and the other on the ground, the minimum distance between them is prescribed as follows:

Pipeline

Grade 1

Grade 2

Grade 3

Grade 1

1 m

2 m

3 m

Grade 2

2 m

3 m

5 m

Grade 3

3 m

5 m

5 m

3. For two gas pipelines running in parallel, if one of which does not belong to the types of pipeline defined in Clause 1, Article 3 of this Regulation, this pipeline shall be regarded as being of grade 1 in order to determine the distance between these two pipelines.

4. Where two gas pipelines run on the ground in parallel (regardless of their grades), the distance between them must be at least 6 meters and the risk level must satisfy the criteria specified in Article 5 of this Regulation.

5. Where two pipelines are designed and constructed simultaneously, the distance between them may be reduced by 30% at most provided that, under all circumstances, the risk level must satisfy the criteria specified in Article 5 of this Regulation.

6. The distance between two pipeline segments laid on the ground within the area of valve stations or shuttle-launching or receiving stations must be at least equal to the distance between these two pipelines when they enter these stations.

Article 13.- Activities permitted in pipeline land strips

Within the limits of pipeline land strips, only investors or operators may carry out constructing, installing, maintaining, repairing or other activities in order to ensure safety for their pipelines.

Article 14.- Activities banned in pipeline land strips

All infringing acts and activities likely to cause danger to pipelines are strictly forbidden. All infringing acts which affect the operation, maintenance, repair as well as safety of gas pipelines shall be handled according to law provisions.

Chapter III

PROVISIONS ON SAFETY CORRIDOR

Article 15.- Safety corridor

A safety corridor is the land area and the space within the limits of two vertical, parallel planes determined on the basis of the minimum distances to each side of a gas pipeline.

Article 16.- Minimum distance required for gas pipelines running through residential areas

1. The minimum distance from an underground gas pipeline to dwelling houses, independent auxiliary works other than dwelling houses prescribed in Clause 2 of this Article is:

a/ 5 meters, for grade-1 pipelines

b/ 7 meters, for grade-2 pipelines

c/ 9 meters, for grade-3 pipelines

2. The minimum distance from an underground gas pipeline to dormitories of 4 or more stories where more than 10 households reside is:

a/ 10 meters, for grade-1 pipelines

b/ 12 meters, for grade-2 pipelines

c/ 15 meters, for grade-3 pipelines

3. The minimum distance from an underground gas pipeline to schools or hospitals is 75 meters.

Article 17.- Minimum distance required for gas pipelines running through industrial parks

1. The minimum distance from an underground gas pipeline running through an industrial park to:

a/ The foot of the fencing wall or boundaries of plants, factories:

+ 3 meters, for grade-1 pipelines

+ 5 meters, for grade-2 or grade-3 pipelines

b/ Inside roads or water supply and drainage works, when running in parallel:

+ 1 meter, for grade-2 pipelines

+ 3 meters, for grade-2 or grade-3 pipelines

2. The minimum distance from underground gas pipelines to independent industrial enterprises is 7 meters.

Article 18.- Minimum distance required for gas pipelines running through other areas

1. The minimum distance from an underground gas pipeline to:

a/ The foot of the talus of a road, when running in parallel:

+ 15 meters, for grade-I, -II, or -III roads (according to Vietnamese standards)

+ 10 meters, for grade-IV, -V, or -VI roads (according to Vietnamese standards)

b/ The foot of the talus of a railway, when running in parallel:

+ 15 meters, for main railways

+ 10 meters, for branch railways

c/ The foot of the talus of an access road of a railway bridge or road bridge, when running parallel:

+ 15 meters, for upstream areas

+ 10 meters, for downstream areas

d/ Ports, ferry or speedboat-landing ports (to the fences or boundaries of works):

+ 30 meters, for upstream areas

+ 20 meters, for downstream areas

e/ Dams, river dykes, sea dykes, when running in parallel (to the protection boundaries of works): 15 meters

f/ National cultural heritages, nature conservation zones, other public welfare works: 20 meters

2. Within the safety corridor of electricity grids, gas pipelines must be laid underground. The minimum distance from the gas pipelines to the electricity works must be approved by competent State bodies.

3. For gas pipelines running in parallel with underground communication cables, electricity cables or water supply and drainage pipelines, the minimum distance from those gas pipelines to the outmost edge of such works must be approved by competent State bodies.

Article 19.- Provisions on pipeline segments laid on the ground

Where a gas pipeline is entirely or partially laid on the ground, the minimum distance of the pipeline segment laid on the ground must be increased by 50% over the distance prescribed in Article 16, 17 or 18 of this Regulation.

Article 20.- Special cases

1. The minimum distance may be reduced by no more than 30% when the corresponding design co-efficient (prescribed in Appendix I to this Regulation, not printed herein) is reduced as follows:

a/ The pipeline runs through grade-1 residential area and the design co-efficient does not exceed 0.60;

b/ The pipeline runs through grade-2 residential area and the design co-efficient does not exceed 0.50;

c/ The pipeline runs through grade-3 residential area and the design co-efficient does not exceed 0.40;

d/ The pipeline runs through grade-41 residential area and the design co-efficient does not exceed 0.30.

The above-said grading of residential houses is prescribed in Appendix 2 to this Regulation (not printed herein).

2. In a number of cases, the minimum distance may be further reduced when additional safety technical measures are applied, such as: increasing the depth of pipelines laid underground, casing pipelines with cement, building tunnels for pipelines, building fences, fencing walls, installing more safety devices, etc. These measures must ensure a risk level satisfying the acceptable risk criterion and be approved by competent State bodies.

Article 21.- Provisions on pipeline routes where many pipelines are built

Where along the same route are built many pipelines, the safety corridor shall be determined according to the plan which satisfies the minimum distance requirements for all of these pipelines within the route.

Article 22.- Activities within the safety corridor

1. Where in safety corridors there exist the minimum distances of at least 5 meters, 7 meters and 9 meters for grade-1, grade-2 and grade-3 pipelines respectively, within the areas measured from the pipeline route boundaries to the safety corridor boundaries, all activities threatening to harm directly or indirectly the gas pipelines shall be forbidden, such as:

- Building houses, setting up tents, building cattle ranches; digging ponds, lakes or wells;

- Planting perennial trees;

- Gathering people in large numbers;

- Quarrying blasts;

- Storing inflammables, explosives, flame sources or flame-generating activities;

- Discharging corrosives.

2. Where in safety corridors there exist the minimum distances exceeding 5 meters, 7 meters and 9 meters, within the areas measured from the pipeline route boundaries to the boundaries of the 5-m, 7-m and 9-m distances, measured from the edge of the pipelines, all activities prescribed in Clause 1 of this Article shall be forbidden; within the areas measured from the boundaries of the 5-m, 7-m and 9-m distances to the safety corridor boundaries, the following activities are forbidden:

- Gathering people in large numbers;

- Quarrying blasts;

- Storing inflammables or explosives.

3. When a gas pipeline runs across a river, within 30 meters in upstream areas or 20 meters in downstream areas, all activities of mooring, exploiting sand, dredging, and other water activities that may cause harm to the pipeline shall be forbidden, except for flow control activities and river transportation.

Chapter IV

PROVISIONS ON AFFECTED AREAS

Article 23.- Affected areas

An affected area is the land area and the space within the limits of two boundaries of the affected area equally distanced from both sides of a pipeline, where a number of activities are restricted under the provisions of this Regulation.

Article 24.- Boundaries of affected areas

The boundaries of an affected area is 200 meters away from the center of the gas pipeline to both of its sides.

Article 25.- Activities within affected areas

Within an affected area, measured from the safety corridor boundaries to the affected area boundaries, all activities must comply with the following provisions:

- Quarrying blasts are banned;

- When building new multi-story condominiums or works regularly occupied by large numbers of people such as schools, hospitals, markets, churches, pagodas, railway stations, ferry quays, etc, the investors of the works must ensure the risk level prescribed in this Regulation.

Chapter V

RESPONSIBILITIES FOR GAS PIPELINE SAFETY MANAGEMENT

Article 26.- Responsibility for ensuring safety for gas pipelines

Gas pipelines constitute an infrastructure of national importance and are protected by law. All organizations and individuals shall have the obligation to observe the regulations on protection of gas pipeline works. When detecting violation acts, incidents and incident risks, organizations and individuals must immediately notify them to the investors, operators or competent State bodies for handling in time.

Article 27.- Responsibilities of investors and operators of gas pipelines

1. Investors, operators shall have to build up safety management systems according to current law provisions, take main responsibility for ensuring safety for people, environment and assets in the process of operating their works, coordinate with the People’s Committees at all levels, the police force and other concerned agencies in examining, urging the implementation of the provisions on safety of gas pipelines, and handling acts of violation thereof.

2. Investors, operators shall have the responsibility to:

- Report on and register the operation of their gas pipelines according to current regulations, reach agreement with the concerned parties on the work of ensuring safety for their gas pipelines.

- Coordinate with the local authorities and police forces in propagating and educating the people on the protection of safety of gas pipelines.

- Notify the plans on building, expanding and renovating their gas pipelines to the concerned parties for collaboration in ensuring public security and safety. Implement such plans only after obtaining the agreement or approval of competent State bodies.

3. Investors, operators shall have to examine and supervise all activities carried out within the boundaries of the pipeline land strips, safety corridors and regularly survey the affected areas.

4. Operators must organize the safeguarding, patrol of pipeline land strips, safety corridors, the prevention of, and timely reporting to competent State bodies on, all acts of intentionally or unintentionally infringing upon such areas; propose to competent State bodies all matters related to the use of land and space in the affected areas, which affect the safety of their gas pipelines.

5. Operators must maintain signboards on pipeline routes, install notice boards, caution boards and boundary posts in necessary places. Signboards, notice boards and caution boards must be installed in easy-to-notice places, inscribed in Vietnamese, capital letters clearly and legibly, and with the name, address and telephone number of the agency to be contacted in emergency cases.

Article 28.- Responsibilities of other project owners

1. When building traffic works such as railways, roads, canals, underground cables, petroleum pipelines, water supply and drainage pipelines, etc,, which are to run across pipeline land strips or safety corridors of the existing gas pipelines, the owners of these projects must have design plans and apply special construction measures in the junctions, which must be approved by competent State bodies, satisfy the necessary criteria in order to ensure the absolutely safe operation of the gas pipelines. In the process of constructing works which run across the land strips or safety corridors of gas pipelines, the project owners shall have to ensure safety for such gas pipelines; coordinate with investors and operators in applying appropriate safety measures.

2. The owners of work projects built in the affected areas shall have the responsibility to:

- Fully notify in time all risks likely to affect the safety of gas pipelines to competent State bodies, investors and operators;

- In the process of building works, ensure safety for gas pipelines; coordinate with the investors or operators in applying appropriate safety measures.

3. In the process of building and operating their works, other project owners shall have to pay compensation for any damage caused to gas pipelines according to law provisions.

Article 29.- Responsibilities of People's Committees at all levels

1. The People's Committees at all levels in the areas along the pipelines shall have the responsibility to:

- Coordinate with the investors and operators in educating people to raise their sense of responsibility for protecting safety of gas pipelines; incorporate the work of protecting gas pipelines in their regular work plans;

- Coordinate with the investors and operators in examining the observance of the provisions of this Regulation by organizations and individuals in their land use as well as coordinate and participate in coping with urgent incidents and overcoming their consequences;

- Stop and handle in time all violations of gas pipeline operation safety; immediately notify such violations to the investors, operators and concerned parties for remedial measures;

- Sanction according to their competence and law provisions acts of infringing upon, destroying, stealing or other acts threatening the safety of, gas pipelines;

2. The local police forces in the areas along the pipelines shall have to join in protecting the pipelines, investigating cases of destroying or stealing pipeline equipment and products carried through the pipelines as well as other acts causing damage to the pipelines.

Article 30.- Responsibilities of concerned ministries and branches

The ministries and branches shall, within their respective powers, have to supervise the implementation of this Regulation, handle acts of infringing upon, or affecting the safety of, gas pipelines, direct the investors and operators and concerned parties in handling accidents and incidents.

Article 31.- Responsibilities of Vietnam Oil and Gas Corporation

Where Vietnam Oil and Gas Corporation or one of its member unit is the investor, operator or a party to the project, besides the responsibilities of a gas pipeline investor or operator as provided for in Article 27 of this Regulation, Vietnam Oil and Gas Corporation shall also have the following responsibilities:

1. To compile or examine design documents, operation, maintenance and repair plans, safety management programs, risk assessment reports and contingency plans for submission to competent State bodies;

2. To examine the implementation of the safety regulations in the process of designing, constructing and operating gas pipelines.

3. To coordinate with the concerned bodies and the People's Committees at all levels in directing and mobilizing rescue forces and equipment in emergency cases involving gas pipelines.

Chapter VI

INSPECTION, COMMENDATION AND HANDLING OF VIOLATIONS

Article 32.- Inspection and examination

Competent State bodies shall have to examine and supervise the operation of domestic and foreign organizations and individuals participating in transporting gas and gas products through gas pipelines in order to ensure their observance of the State's laws and regulations on oil and gas security and safety.

Organizations and individuals carrying out activities related to gas pipelines, activities within the boundaries of pipeline land strips, safety corridors and affected areas shall be submit to the inspection and examination by specialized agencies of their observance of the provisions of this Regulation.

Article 33.- Commendation

Organizations and individuals that record achievements in protecting safety for gas pipelines or help detect and stop incidents, acts of infringing upon gas pipelines, restrict human and property losses, shall be considered for commendation according to law provisions.

Article 34.- Handling of violations

Organizations and individuals violating the provisions of this Regulation shall, depending on the seriousness and nature of their violations, be cautioned, fined, have their means confiscated, or be subject to other forms of administrative sanction.

Individuals who commit violations involving criminal elements shall be handled according to current law provisions.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 35.- For gas pipelines currently under operation, the safety-related criteria already approved by competent State bodies shall continue to be applied. For gas pipelines for which the compensation and ground clearance work has not yet been completed, the provisions of this Regulation shall apply.

Prime Minister
PHAN VAN KHAI